Common Misconceptions About Bitcoin: A Guide For Journalists

Bitcoin IS being used to sell illegal drugs on sites like Silk Road. However, illegal goods other than drugs – including assassinations, child pornography and even guns, are NOT gaining significant traction. The black market website Silk Road made considerable news a few months ago when a paper by Nicolas Cristin was released, claiming that the site had a monthly trade volume of over $2 million . Focusing on the black market aspect of Bitcoin is a popular habit of journalists, as shown by US senator Charles Schumer in June 2011 when he accused Bitcoin of being “an online form of money laundering used to disguise the source of money” when buying and selling drugs. Even now, articles are using Schumer’s words as part of a two-sentence introduction to what Bitcoin is. Other articles, however, go even further; one blog piece claims that “the fact that you can buy drugs, guns, ...